Consumer Protection Laws in India Background • Wide spectrum of Laws • Constitution to CPA, 2019 • Constitutional Mandate • Art 19(1)(g)- Freedom of profession, trade or business • Art 19(2)- Reasonable restrictions • Business on streets, harmful/dangerous trade • Art 21- RTL also includes Right to health • Vincent v UOI • Art 47- State to raise the level of nutrition and standards of living to improve public health Wide Spectrum of Laws • Prevention of Food Adulteration Act, 1954 • Essential Commodities Act, 1955 • Prevention of Black marketing Act, 1980 • Standards of Weights and Measures Act, 1976 • Bureau of Indian Standard Act, 1986 • Sugar (Regulation of Production) Act, 1961 • Drugs and Cosmetic Act, 1940 • Competition Act, 2002 • Electricity Act, 2003 • Intellectual Property Laws • Consumer Protection Act, 1986 • Consumer Protection Act, 2019 Law of Torts Donoghue v Stevenson [1932] UKHL 100 • Mrs. Donoghue's friend bought ginger beer from Cafe in Paisley • Bottle opaque glass- She consumed half bottle • Remaining pour into a glass • She noticed decomposed snail floated out • Severe gastro-enterities • She sued Stevenson, a manufacturer • Defendant contented • No contractual agreement Source: https://i.ytimg.com/vi/WgEYzgrNvy0/hqdefault.jpg HOL held that • It was a negligence • Even no contractual arrangement with Stevenson • He is still responsible for integrity of product • Duty to care breached • Not to sell opaque bottles of ginger-beer • Held defendant liable and to pay damages to plaintiff Doctor- Negligent Services? State of Gujarat and Others v Laxmiben Jayantilal Sikligar • Patient suffering from pain in swallowing • Government hospital- Doctor performed surgery • Result- permanent paralysis of larynx (voice box) • Doctor contented- no intention to cause harm • Court held guilty of negligence Res ipsa loquitur • General rule for Burden of proof • In Civil cases- On part of plaintiff • In Criminal Cases • State (prosecution) to prove • Tort of negligence • The thing speaks for itself • Plaintiff need not prove negligence on part of defendant • Inference of negligence drawn from facts Source: https://study.com/cimages/multimages/16/resipsa.png Consumer Protection Act, 2019 (old 1986) • Better protection to rights of consumers • Based on Doctrine of Caveat emptor • Let the buyer beware Exceptions • Fitness of product • Bicycle for trekking but sold ordinary bicycle • Seller will be responsible • Goods of marketable quality • Sale by sample • Seller will be responsible Who is a Consumer? • Any person who • Buys any goods for a consideration which has been paid or will be paid • Hires or avails any service for a consideration which has been paid or will be paid • It includes offline or online transactions through electronic means or by tele-shopping or direct selling or multi-level marketing • Prevent unfair trade practices in e-commerce • Not consumer • A person who purchase goods for resale or any commercial purpose • Obtain services under Contract of Service Complaint • Means any allegation in writing made by complainant that, • Unfair trade practices or restrictive trade practices • Goods bought by him suffer from defects • Services availed/hired suffer from deficiency • Trader charged a price in excess • Hazardous goods/services offered for sale “Complainant" means • A consumer (end-user) • Any voluntary consumer association registered under the Company Law • The Central Government or any State Government, • One or more consumers, where there are numerous consumers having the same interest • In case of death of a consumer, his legal heir or representative Goods and Product Liability • "Goods" means every kind of movable property and includes "food" • "Product liability" means the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto • Eg. Pressure cooker explodes due to manufacturing defect and harms consumer • Earlier act • Only compensate for cooker's cost & for injury separate suit before the civil court • Now it can be sued before consumer forum for injury as well Rights of a Consumer • Right to safety • Right to be informed • Right to choose • Right to be heard • Right to seek redressal • Right to consumer education Composition of Consumer Disputes Redressal Commission Forums Composition of Members Appointment of Compensation Members Limit Further Appeals District Forum President (Dist Judge) -Min 2 members State Govt Rs 1 crore State Commission -Within 45 days State President (HC Judge) State Govt Commission -Min 4 members Rs 1 cr to Rs 10 cr National Commission -Within 30 days National President (SC Judge) Central Govt Commission -Min 4 members Above Rs 10 cr Supreme Court -Within 30 days Procedure for Complaint • Limitation- Within 2 years of cause of action (Sec 69) • Jurisdiction • Where seller has his business • Incident happened • Where complainant resides • Video conferencing also possible (physical presence is not compulsory) • Submit- 3 copies of complaint with supporting documents • Name and address of complainant & opposite parties • Date of purchase, amount paid, item of goods • Receipts if any, relief sought Powers and Functions of Redressal Agencies • Powers of Civil Court • Summons, examine witness, attendance • Forum can order following reliefs • • • • • To remove the defect To replace defected goods with new To pay compensation for any loss To discontinue unfair trade practices Not to offer hazardous goods for sale • Encourages settlement by Mediation Central Consumer Protection Authority (CCPA) • Misleading ad, unfair trade practices • False information regarding quality/quantity of good/service • Fill the void in existing regulatory regime • Consists of Chief Commissioner & other commissioners • HQ- New Delhi • Investigation wing, headed by DG • To carry out inquiries and investigations, search and seizure Functions and Powers of CCPA • • • • • Inquire violations of consumer rights Issuance of safety notices Impose penalty for violation Adopt best international practices on consumer rights Initiate suo motu actions • Penalty for False/misleading ad • 10 lakh & Rs 50 lakh for subsequent violation • It can be imposed on endorsers as well • Ban the endorser for 3 years • Appeals from CCPA- to National Commission within 30 days Penalties • Fails to comply with direction of CCPA • Imprisonment 6 months or fine 20 lakh or both • Penalty for adulterated products • For injury- fine 3 lakh or imprisonment 1 year • For death- fine 10 lakh or imprisonment 7 years Source: https://img.etimg.com/photo/msid-70711442/consumer-protection-act.jpg Limitations of CPA • No interim relief- injunction • Hospital (Shantha case) • Free treatment (contract of service)- CPA doesn’t apply • Because no master-servant relationship • Private Hospital (contract for service)- CPA applies
